Williams v. Teran, Inc., 20149

Citation266 S.C. 55,221 S.E.2d 526
Decision Date20 January 1976
Docket NumberNo. 20149,20149
PartiesDavid D. WILLIAMS and Miga Williams, Respondents, v. TERAN, INC., et al., Defendants, of whom Grover C. Cauthen, III, and William C. Baugh, Jr., are Appellants.
CourtUnited States State Supreme Court of South Carolina

Jefferies, McLeod, Unger & Fraser, Walterboro, for appellants.

Smoak, Howell, Bridge & Moody, Walterboro, for respondents.

GREGORY, Justice:

Respondents instituted this suit to foreclose a real estate mortgage covering the Travelers Motel in Walterboro, South Carolina. The sole issue before the Court is the proper construction of a concededly ambiguous guaranty agreement executed by appellants Cauthen and Baugh. Appellants perfected this appeal from a lower court ruling in favor of respondents. We affirm.

John Leonardi and Mary Leonardi sold the motel property to respondents David D. Williams and Miga Williams on January 29, 1968. A portion of the purchase price was represented by a $200,000.00 note and purchase money mortgage. On August 28, 1970, David D. Williams and Miga Williams sold the motel property to Teran, Inc., which corporation assumed the payment of the note and first mortgage held by John Leonardi and Mary Leonardi. Teran, Inc. also executed a $182,250.00 note and purchase money mortgage to the respondents, David D. Williams and Miga Williams, which was a second mortgage. On June 23, 1972, Teran, Inc. sold the motel property to Travelers, Inc., which assumed the payments of the first and second mortgages held by John Leonardi and Mary Leonardi and by David D. Williams and Miga Williams respectively.

In August, 1973, Travelers, Inc. (hereinafter referred to as Travelers) was delinquent in the payments required by the second mortgage held by respondents David D. Williams and Miga Williams. The respondents advised Travelers that due to the default in payments, they had elected to foreclose on that mortgage. In an effort to induce the respondents not to foreclose on said mortgage, appellants Grover C. Cauthen, III, and William C. Baugh, Jr., being the sole stockholders of Travelers, executed their certain guaranty agreement dated August 10, 1973, as follows:

'In consideration of your reinstating the delinquent note from Teran, Inc. to you, dated August 28, 1970, in the amount of $182,250.00 with an unpaid principal balance of $159,034.17 as of May 1, 1973, that you have declared to be in default, the undersigned hereby absolutely and unconditionally guarantee to you, and to your heirs and assigns, the Due and punctual payment (emphasis added) of the above referred to note in accordance with the terms and conditions thereof. This guarantee shall terminate when the note and mortgage given by David D. Williams and Miga Williams to John Leonardi and Mary Leonardi has been paid in full and cancelled of record, and when the above referred to note from Teran, Inc. to you has been reduced to an unpaid principal balance of $100,000.00.'

The mortgage above referred to with an unpaid principal balance of $159,034.17 was a second mortgage held by the respondents herein. The mortgage given by David D. Williams and Miga Williams to John Leonardi and Mary Leonardi was a first mortgage.

After this agreement was executed, respondents David D. Williams and Miga Williams ceased further action on foreclosure of the mortgage held by them. Shortly thereafter, the appellants defaulted in the payments on the note and second mortgage held by respondents David D. Williams and Miga Williams as well as the payments on the note and first mortgage held by John Leonardi and Mary Leonardi. The Williamses instituted an action for foreclosure and in their Complaint sought a personal judgment against the appellants for any deficiency.

The case was referred to the Master in Equity for Colleton County who concluded that the net proceeds of the foreclosure sale be applied to the payment of the first mortgage held by John Leonardi and Mary Leonardi and then secondly, to the payment of the second mortgage held by the respondents David D. Williams and Miga Williams, and that if, after such applications, there was a deficiency due to the Williamses in excess of $100,000.00, then the respondents would have a personal judgment against appellants for the excess of the deficiency over $100,000.00

The...

To continue reading

Request your trial
33 cases
  • Crenshaw v. Erskine Coll.
    • United States
    • United States State Supreme Court of South Carolina
    • 9 de setembro de 2020
    ...time, and location for the scheduled hearing, but also asked that he reply if he desired the hearing. See Williams v. Teran, Inc. , 266 S.C. 55, 60, 221 S.E.2d 526, 529 (1976) (noting that any doubt in a contract must be resolved against the drafting party); Mid-Continent Refrigerator Co. v......
  • Ecclesiastes Prod. Ministries v. Outparcel
    • United States
    • Court of Appeals of South Carolina
    • 14 de junho de 2007
    ...accord D.A. Davis Constr. Co., Inc. v. Palmetto Props., Inc., 281 S.C. 415, 418, 315 S.E.2d 370, 372 (1984); Williams v. Teran, Inc., 266 S.C. 55, 59, 221 S.E.2d 526, 528 (1976); RentCo., a Div. of Fruehauf Corp. v. Tamway Corp., 283 S.C. 265, 267, 321 S.E.2d 199, 201 (Ct.App.1984). "Contra......
  • Ward v. West Oil Co., Inc., 4389.
    • United States
    • Court of Appeals of South Carolina
    • 12 de maio de 2008
    ...accord D.A. Davis Constr. Co., Inc. v. Palmetto Props., Inc., 281 S.C. 415, 418, 315 S.E.2d 370, 372 (1984); Williams v. Teran, Inc., 266 S.C. 55, 59, 221 S.E.2d 526, 528 (1976); RentCo., a Div. of Fruehauf Corp. v. Tamway Corp., 283 S.C. 265, 267, 321 S.E.2d 199, 201 (Ct.App.1984). "Contra......
  • State v. Degnan, 23462
    • United States
    • United States State Supreme Court of South Carolina
    • 24 de setembro de 1990
    ...... State v. Williams, 263 S.C. 290, 210 S.E.2d 298 (1974).         While this Court has ......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT